Yen Speculators Turn Net Long for First Time Since February as BOJ Hike Bets Build
Speculators have turned net long on the yen for the first time since February, according to data from the Commodity Futures Trading Commission. In the week ending September 8, non-commercial positions in yen futures were a net of 10,796 long contracts. This is a reversal from the previous week's net shorts of 92,227.
The yen has gained strength this month due to expectations of an accelerated schedule of rate hikes by the Bank of Japan and potential repatriation of assets by local investors. The dollar-yen exchange rate reached its strongest level since February 17 on September 8, at 152.89.
The yen's weakening trend began last October with the election of Prime Minister Sanae Takaichi, a fiscal dove. Market intervention by Tokyo and Washington in July helped stabilize the currency, which had slid to a four-decade low of 163.99 per dollar before that.